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Mortgage Payment Calculator

When a family or individual decides it is time to purchase a home, they might want to check out a couple of different Mortgage Payment and Interest Calculators online. By using these online tools, they will get a better idea of what their monthly payments will be and be able to determine what amount of house they can comfortable afford.

One major reason for the housing fiasco of the past several years is because people were purchasing too much house for their budgets. If they had known ahead of time what their payments were going to be or in what price range they should be shopping for, a lot of this turmoil could have been avoided.

Most of these calculators are user-friendly and begin by entering the purchase price of the house. For example a house that cost $165,000, then this is the number you would put in the first box. The next box is for how many years you want to make the loan for. This is typically 20-30 years.

The next box is for the interest rate. There are a lot of variables that will go into this figure – your credit score, your previous credit-mortgage history, job tenure and so on. If the current interest rate is around 3.5% place 4 percent in the box. If you know you have poor credit, go up to 6 or 7%.

The next box will allow you to put in a starting date from a preprogrammed calendar. It usually take about 30 days for a loan to be processed, at that time, the interest rates may change and this exercise may become invalid but it will still give a homebuyer a pretty good idea of what they are able to spend.

There are sometimes room for extra payments and a place to specify what each payment is for. This could be for homeowners insurance or taxes. A quick look at the home listing should reveal this information.

Press enter and you will have your monthly payment for this amount of house. This is a good thing to have when visiting a real estate agent and shopping for a new home.